1/ Jacobs and Company has warrants outstanding, which are selling at a $2.00 premium above intrinsic value. Each warrant allows its owner to purchase one share of common stock at $26. If the common stock currently sells for $30, what is the warrant price? (Round your answer to 2 decimal places.)

$10.00

$9.00

$6.00

$7.00

2/ Sen Corporation warrants carry the right to buy 7 shares of Sen common stock at $10.00 per share. The common stock has a current market price of $14.75 per share. The intrinsic or minimum value of one Sen warrant is (Round your answer to 2 decimal places.)

$0

$34.75

$33.25

$28.25

3/ The Burma Hat Company's warrant is trading for $10.20. The warrant carries the option to purchase two shares of common stock for $48. What is the speculative premium if the stock price is $51.30?

$3.30

$3.60

$6.60

$10.20